The marriage of Tesla Motors and Nevada — pending legislative review — experienced a coronation of sorts today during a press conference at the Nevada Capitol in Carson City.

In announcing the deal, Nevada Republican Gov. Brian Sandoval called it a "monumental announcement that will change Nevada forever and set in motion the creation of thousands of new jobs" and bring billions of dollars into Nevada's economy.

He said it "emphatically" passes the "Is this good for Nevada?" test.

To get the deal, Nevada proposed a $1.25 billion tax incentive over 20 years to Tesla. If the deal is approved by the Nevada Legislature, Tesla will operate in the state essentially tax free for 10 years.

Elon Musk, Tesla Motors CEO, said Nevada didn't present the biggest incentive of the five states in the running for the company's gigafactory.

"This is not just about the incentives," he said.

In exchange, the company must invest a minimum of $3.5 billion in manufacturing equipment and real property in the state—a threshold that is much lower than the $10 billion state officials expect the company to invest in Nevada over the next two decades.

Steve Hill, executive director of the governor's office Economic Development, said Tesla must stay with its side of the deal, or lose incentives.

"If they don't do that, those incentives don't exist," he said.

Musk said Nevada is a "really get things done state. That was a really important part of the decision."

Politicians, business leaders and media swarmed the Capitol for the announcement.

Sandoval thanked all of them, including Sen. Harry Reid, D-Nev., who was in Las Vegas for a clean energy summit today.

"He has been there every step of the way," Sandoval said of Reid. "This is a Nevada victory."

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Four University of Nevada, Reno officials, including President Marc Johnson, comment on the significance of Tesla opening a battery factory in the area. Video provided by UNR>
UNR

In announcing the deal, Nevada Republican Governor Brian Sandoval called it a "monumental announcement that will change Nevada forever and set in motion the creation of thousands of new jobs" and bring billions of dollars into Nevada's economy.

He said it "emphatically" passes the "Is this good for Nevada?" test.

Here is Tesla's official statement:

CARSON CITY, NV – Governor Brian Sandoval and Elon Musk, Chairman and CEO of Tesla Motors, announced today that Nevada has been selected as the official site for the Tesla Gigafactory.

"This is great news for Nevada. Tesla will build the world's largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead," stated Governor Brian Sandoval.

"I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project," said Elon Musk, Chairman and CEO of Tesla Motors.

"On behalf of the State of Nevada, I would like to acknowledge this monumental day and provide my initial support. This is a significant opportunity to make a major stride to improve our statewide economy. I look forward to receiving the necessary information so the Legislature can meet and take necessary action to support this major industry coming to Nevada," stated Speaker Marilyn Kirkpatrick.

City of Reno statement:

"Together with our regional and state development authorities, we have been working hard to spread the word that northern Nevada is 'open for business,'" Reno Mayor Bob Cashell says. "We look forward to welcoming Tesla and thousands of future employees to The Biggest Little City."

"Tesla's decision to pinpoint our region as the home for its new battery gigafactory further demonstrates that Reno is an economically competitive choice for companies looking to start up, expand, or relocate," Reno City Manager Andrew Clinger says.

Among the many advantages Reno and Sparks offer companies are:

A quality and trained workforce

A low cost of living and doing business

A favorable tax structure

A Tier 1 University in Reno

Strategic location on the I-80 corridor; only a 3-hour drive from the San Francisco Bay Area

In addition to the direct economic benefits of being chosen as Tesla's future home, the announcement represents a significant win for the Reno region's innovative and business-friendly perception on the national level.

"We can add this to recent accolades that illustrate why Reno is a great place to live and do business," Clinger adds. "We continue to show up on prestigious lists such as Best Places to Live, Most Entrepreneurial Metropolitan Area, and Best National Universities."

City of Sparks statement:

Sparks Mayor Geno R. Martini issued the following statement on today's announcement by Nevada Governor Brian Sandoval that Tesla has selected Nevada as the tentative site for the future gigafactory.

"On behalf of the Sparks City Council and the residents of Sparks, I want to welcome Tesla Motors to our community here in the greater Truckee Meadows region. I also want to thank Governor Sandoval and his team for their leadership, along with the folks at EDAWN, and all those who made this opportunity with Tesla possible. I urge our legislators to take quick action and approve the agreement that will seal the deal for Tesla to move to Nevada. The long term economic impact, directly and indirectly, will help to strengthen our economy and create jobs, and ultimately provide a boost to critical economic sectors including our education system. This opportunity has raised the profile of Nevada and our region which will only serve to draw more attention from prestigious and well-known companies such as Tesla."

In addition to the Mayor's statement, Sparks City Manager Stephen W. Driscoll said the following:

"Today's announcement that Tesla has decided to build its gigafactory in Nevada is a tremendous shot in the arm for us and brings with it a higher level of visibility for our region and greater awareness of the pro-business climate of our state. The project also underscores the potential for alternative energy development in our state. Communities across our region will benefit from this exciting announcement. Our City is the closest metropolitan area to the Tesla site, just 13 miles to the west of the Tahoe Reno Industrial Center. We stand ready and committed to work with developers and stakeholders to provide for the potential needs and services of the Tesla workforce."

U.S. Sen. Dean Heller statement:

"This is wonderful news for Nevada. Our state has struggled to come out of the great recession for some time, but under the leadership of Governor Sandoval, there is light at the end of the tunnel.

"This announcement shows Governor Sandoval's policy of creating a low-tax environment to attract cutting-edge industry leaders, like Tesla, is working for our state.

"I applaud his leadership and look forward to working with the Governor to create more jobs for families in the Battle Born state." said Senator Dean Heller.

Live Blog Gov. Sandoval/Tesla announcement

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12:45 p.m. update:

Stephanie Tyler, Nevada president of external affairs for AT&T, said the Tesla announcement makes AT&T more likely to bring its super-fast gigabit internet service called GigaPower to Reno.

"How this valley will be looked at by companies that make investments in technology will change (after the Tesla announcement) and is positive for everyone involved. We look at the case that each community would bring in terms of making this investment (to bring gigabit service). Northern Nevada post-Tesla is one more consideration for looking at this community going forward for future phases of GigaPower. Anything that makes this community more technology focused makes it a more attractive site for any technology company to invest in infrastructure or locate here."

Noon update: Today, Gov. Brian Sandoval is expected to announce that he will call a special session to offer a tax abatement package for Tesla's 6,500-job gigafactory.

Tesla Motors Inc. executives will be in attendance at the 4 p.m. news conference at the Capitol in Carson City.

According to a source close to legislative leaders, Sandoval will announce will be that a special session as soon as next week will consider a tax abatement package for Tesla, which has selected Northern Nevada for the gigafactory.

"Gov. Sandoval is ready to produce an incentives and abatement package," the source, requesting anonymity, said of the special session likely to last one or two days.